Answer:
German companies do not recognize the profit <u>until the project is completely finished and they have been paid.</u>
Explanation:
German companies prepare their accounting balances under IFRS standards (common for all EU member countries) and German GAAP.
Under IFRS standards, revenue must be recognized when the business satisfies a performance obligation.
German GAAP is very prudent in determining profits, that is why they are only recognized once a project is completely finished and it has been completely paid.
Some specific German rules are to starting to change due to globalization, but others are still subject to legal requirements.
Answer:
b. $2 billion trade surplus with country B.
Explanation:
When a country exports more than it imports, it is said that the country has a trade surplus. On the other hand, when a country imports more than it exports, it is said that the country has a trade deficit.
In this case, exports to country B are worth $10 billion which are larger than the $8 billion of imports from country B. Country A's trade surplus is given by:
Therefore, the answer is alternative b.
Aldi!!! Personal preference due to the organization.
Answer:
The correct word for the blank space is: competitive.
Explanation:
Pricing strategies are methods companies use at the moment of setting the prices of their products. The most common pricing strategies are:
- Cost-plus pricing.<em> Involves recognizing the production costs and adding a percentage of those costs which represents the profit of the firm.
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- <u>Competitive pricing</u>.<em> Implies establishing the price of a product similar to what competitors in the market have set.
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- Value-based pricing.<em> It requires setting the price of goods and services based on what consumers think the price should be.
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- Price skimming.<em> Involves pricing a product high at first and changing the price according to market fluctuations.
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- Penetration pricing.<em> Implies setting the price of a product low to wipe out competitors and raising it after they completely disappeared.</em>
